Inflation reached 5.1% in October, the highest level since 2007

New figures from the Central Bureau of Statistics show that consumer prices rose by 5.1% in October of this year compared to the same period last year.

This is the largest annual change in prices since April 2007, the Central Statistics Office said.

The rise in energy prices remains the main reason behind the escalation of the inflation rate. But other goods and services are on the rise, too.

Gasoline prices rose 22%, diesel prices 25%, and home heating oil jumped 71% last month compared to October last year.

Electricity prices increased by 15.5%, while gas prices witnessed a rise of 23%.

Services are also increasing with rents up 7.5% and phone costs up 5%.

The ongoing recovery from the Covid virus has seen hotel stays up just over 17% and flights up just over 72%.

Private rents rose 7.5%. Do-it-yourself items increased just over 13% and major home appliances increased just over 9%. Food rose 0.8%.

The only category that fell on an annual basis was clothing and footwear.

The Finance Ministry said last month that inflation would peak at an average of 4.5% in the last quarter before dropping below 2% next year.

However, she said the rate could approach 3.5% through 2022 if there are higher energy prices, prolonged disruptions in the global supply chain, and increased economic demand in the short term.

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The Central Bureau of Statistics said consumer prices in October rose 0.7% month-on-month.

This is the 12th consecutive month that monthly inflation appears. The Central Bureau of Statistics said that prices fell during the month of October last year by 0.6% in the month.